The company's October analysis, published in the Greensboro/Winston-Salem Apartment Report, shows 1,217 apartment units are under construction and another 1,433 units are on the drawing boards. However, the absorption level has been dropping, totaling an average 986 units per year. The region absorbed 636 units in the last six months.
The 8.3% vacancy level is the second-highest since March 1999 when an 8.4% rate was recorded by the researchers.
Carolinas Real Data analyst Michelle Westbrook tells GlobeSt.com she expects the lackluster demand and the high vacancy rates to continue throughout 2002 with vacancies possibly hitting the 9.1% mark.
But the analyst says, "It is not a long-term issue; in the short term, development will slow down and it will be more difficult to raise rents."
In September, one-bedroom apartments were renting, on average, for $537; two-bedroom, $623; and three-bedroom, $778. In September 2000, those numbers were $524 for one bedroom, $605 for two bedrooms and $751 for three bedrooms.
The report tracks apartment buildings with at least 40 units. For the September survey, 47,544 units were monitored in Alamance, Guilford and Forsyth counties. Since then, 1,844 units have been added.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
